Steven Brooks Comfort Zone Trading

One of the biggest myths that Steven Brooks hears is that “In order to make more money I have to risk more money.” Because of that, traders feel that they have to risk a lot. But Steven believes you can make more money by risking less. In his experience, success in trading has little to do with your trading strategy. Steven believes that profits are a result of trading in your comfort zone. What does he mean by that? How do you find and stay in your comfort zone? Listen to this episode of How To Trade It to learn more!

Why should you trade in your comfort zone? Steven Brooks shares his take in this episode of How To Trade It! #stocks #stock #trading #StockMarket #Investing #DayTrading #StockPicks #ComfortZone #Strategy #Data #Risk Click To Tweet

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You’ll want to hear this episode if you are interested in...

  • [1:07] The importance of a positive mindset.
  • [4:53] Determine your emotional threshold.
  • [12:54] How to trade in your comfort zone.
  • [15:08] When do you raise your comfort zone?
  • [16:07] 3 myths that traders believe.
  • [20:55] How Steven built discipline.
  • [26:54] What Steven’s trading process looks like.
  • [33:21] How Steven helps traders.
  • [34:44] Get a FREE guide from Steven.

The importance of a positive mindset

Steven believes that it’s incredibly important to have a positive trading mindset. He’s worked with a lot of individual “stay-at-home” traders. In his opinion, their success has to do with their mindset.

He shares that “Profits are the net result of a lot of very good decisions. A good decision may not always generate a profit—but it’s still a good decision.”

You have to have realistic expectations about profitability, how often you’ll generate a profit, and how much you’ll make as a trader. Steven notes that you have to learn to grade yourself on making a good or bad decision versus whether or not you made money. You might not win every single trade. There might be weeks or months you don’t make money. But realistic expectations put you in the right frame of mind to be profitable for the long-term.

Determine your emotional threshold

What you need is the ability to make all of your choices in a situation where you’re comfortable. Every trader—professional or brand new—has a line in the sand, an emotional threshold. Once you cross that line, your decision-making process becomes emotional. You need to stay in your comfort zone.

If Steven had to make someone a profitable trader in three months, the first thing he’d do is make sure they’re able to trade in their comfort zone every single day. How? He’d make sure their trading decisions aren’t emotional. If you aren't getting the results you want, have an honest conversation with yourself. What are you comfortable risking? $100? $500? Your line in the sand is that last number you said yes to.

72% of successful traders that are taught how to trade in their comfort zone became more successful without learning anything else. They put themselves in a situation where they could make sound, logical, and comfortable choices.

Why do you need to determine your emotional threshold to be a successful trader? Steven Brooks shares his thoughts in this episode of How To Trade It! #stocks #stock #trading #StockMarket #Investing #DayTrading #StockPicks #ComfortZone #Strategy… Click To Tweet

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How to trade in your comfort zone

Steven recommends that you trade in your comfort zone every day. If you move outside it, get yourself back into it the next day. What are his other rules?

  • Never risk more than your emotional threshold.
  • Don’t take on too many positions at any given time.
  • Risk roughly the same amount of money per trade plus or minus 10%.

90–95% of traders who do this will have better results overnight without learning new trades. He also recommends doing this exercise daily. Ask yourself:

  • Did I make bad trading decisions today?
  • What were they? Why were they bad? Write them down.
  • Did I make good trading decisions today?
  • What were they? Why were they good? Write them down.

Repeat that process over and over again until you’re profitable. Let your goal be simply making more at the end of the month than you did at the beginning. You can safely grow an account to larger numbers without taking unnecessary risks. When do you raise your comfort zone? Listen to hear Steven’s thoughts!

Steve’s successful trading process

There are two things that Steven does very well. Firstly, he never steps outside of his trading comfort zone. He stays in his comfort zone and makes repeated good decisions. Secondly, he is data-dependent in his decision-making process. If his data says he has an 80% chance of making money, he doesn’t second-guess it. This gives him clarity and confidence. He knows his odds of success are significantly higher.

He emphasizes that you don’t have to make a trade every single day. It’s why Steven loves scanners. There may be times the data tells you to wait. Other times it says to take multiple trades a day. How often he takes a trade depends on the opportunity available in the market at that time. Take what the market gives you—don’t get emotional.

Steven became a better baseball player when he started detaching himself from his batting average. When he instead focused on quality at-bats, his batting average shot through the roof. He focused on what he could control. He can control his risk before he takes the trade. He can control his entry. He can control a profit target and a stop loss. He can’t control what the stock will do. Score yourself based on what you can control.

How has Steven Books found success as a trader? He shares his strategy in this episode of How To Trade It! #stocks #stock #trading #StockMarket #Investing #DayTrading #StockPicks #ComfortZone #Strategy #Data #Risk Click To Tweet

Resources & People Mentioned

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